Mr Mitul Shah, Head Of Research at Reliance Securities.
Indian equities ended higher with Nifty gained 1.1%. Nifty Mid Cap was up 1.9% while Nifty Small Cap climbed 0.5%. All sectoral indices ended in green except Nifty Oil & Gas which slumped 0.2%. Nifty FMCG gained the most at 2.64% followed by Nifty Auto and Nifty Consumer Durables which were up 2.6% and 2.4% respectively. Meanwhile the Rupee saw further plunge of 79.37 against the Dollar. Global macroeconomic trends, movement in crude oil prices and FII activity will dictate the markets ahead of the start of quarterly earnings season.
U.S. equities ended mixed as S&P 500 rose 0.2% to start the trading week after the Independence Day holiday. The Dow Jones lost 0.4% while Nasdaq shed earlier losses to gain 1.8%. 10-year U.S. Treasury note fell to 2.808%. Benchmark U.S crude ended at $99.50 a barrel, its first close below $100 since early May and its largest one-day percentage decline since April. New orders for US-manufactured goods increased more than expected in May, the factory orders rose 1.6% in May after 0.7% growth in in April.
As 1QFY23 has ended, markets await on corporate earnings results for cues. Rising inflationary pressures and concerns of global recession, continue to impact overall sentiments amid geopolitical issues of the prolonged Russia-Ukraine war. With the arrival of monsoons, crop sowing has picked up its pace which should mitigate food inflation, and is likely to influence India's economic outlook in the coming weeks. The government is banking on the monsoon rain to keep rice production, inventories and food inflation at a manageable level. While Oil and food input prices have majorly pushed up inflation, commodity prices are showing signs of settling down.